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作者：Cunningham, Lauren M.; Johnson, Bret A.; Johnson, E. Scott; Lisic, Ling Lei
作者单位：University of Tennessee System; University of Tennessee Knoxville; George Mason University; Virginia Polytechnic Institute & State University
摘要：The SEC has long asserted that earnings management practices result in adverse consequences for investors. We examine whether SEC oversight affects firms' accounting quality in terms of earnings management trade-offs. We expect that increased firm-specific regulatory scrutiny, in the form of an SEC comment letter, will induce management to switch from accrual-based earnings management (AEM), which is a main focus of the SEC, to real-activities-based earnings management (REM), which is not like...
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作者：Hayes, Matthew J.; Reckers, Philip M. J.
作者单位：University of Michigan System; University of Michigan; Arizona State University; Arizona State University-Tempe
摘要：In an experiment including experienced managers, we investigate how supervisor and subordinate narcissism influence a supervisor's review of a subordinate's accounting estimate. While narcissistic supervisors express greater liking for narcissistic subordinates (narcissistic tolerance), they nonetheless reject and revise the accounting estimates of narcissistic subordinates to a greater extent than they reject estimates of non-narcissistic subordinates (narcissistic hypocrisy), even when doing...
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作者：Elliott, W. Brooke; Grant, Stephanie M.; Hobson, Jessen L.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Washington; University of Washington Seattle
摘要：Technological advances are creating a shift in the information disclosure environment allowing more investors to interact with management. We examine three key levels of trader-management interaction to assess the accuracy of traders' market-tested value estimates and resulting market price. These data require an engaging experiment and a complex, contextually rich asset, which we create by playing a popular gaming app before the experiment. Participants view financial information, ask managem...
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作者：D'Augusta, Carlo; DeAngelis, Matthew D.
作者单位：Middle Tennessee State University; University System of Georgia; Georgia State University
摘要：We investigate whether accounting conservatism, which has been found to be effective in constraining management opportunism in other settings, constrains upward tone management (UTM) in the Management's Discussion and Analysis (MD&A) portion of the 10-K filing. We hypothesize that conservatism makes it harder for managers to opportunistically downplay bad news and magnify good news when discussing current performance. Consistent with this hypothesis, we find that UTM is negatively associated w...
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作者：Frankel, Richard; Kim, Bong H.; Ma, Tao; Martin, Xiumin
作者单位：Washington University (WUSTL); Seoul National University (SNU); Texas Tech University System; Texas Tech University
摘要：Using novel receivable-based loan data, we study the effect of aging-report loan covenants on borrowers' accounts receivable reporting quality. Our purpose is to highlight a channel that lenders use to obtain private information and to understand whether lenders' information acquisition affects the financial reporting quality of borrowers. Compared to receivable-based borrowers without aging-report requirements (control firms), borrowers with such requirements (test firms) increase their recei...
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作者：Eugster, Florian
作者单位：Stockholm School of Economics
摘要：Research on the effects of voluntary disclosure quality on the cost of equity capital is often plagued by endogeneity concerns. In this paper, I use a dynamic panel system GMM estimator, which provides internal instruments from the firm's history that directly address endogeneity arising from unobserved heterogeneity and simultaneity. By using hand-collected voluntary disclosure scores for firms listed in the Swiss stock exchange, I examine the dynamic relation between voluntary disclosure qua...
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作者：Pittman, Jeffrey; Zhao, Yuping
作者单位：Memorial University Newfoundland; Virginia Polytechnic Institute & State University; University of Houston System; University of Houston
摘要：Theory suggests that financial report-based debt covenants engender incentives for the manager to relax covenant constraints through accounting choices in order to avoid costly covenant violations. Prior studies directly testing this hypothesis in the context of financial misreporting fail to find consistent evidence. Using a more refined measure of debt covenant restriction, we find that debt covenant restriction is positively associated with the probability of financial statement misstatemen...
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作者：Cohen, Daniel; Pandit, Shailendra; Wasley, Charles E.; Zach, Tzachi
作者单位：Texas A&M University System; Texas A&M University College Station; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Rochester; University System of Ohio; Ohio State University
摘要：To test hypotheses about earnings management, many studies investigate managers' manipulation of real activities (real earnings management, REM). Tests using measures of abnormal REM hinge critically on the measurement of normal real activities. Yet, there is no systematic evidence on the statistical properties of commonly used REM measures. We provide such evidence by documenting the Type I error rates and power of the test of the REM measures commonly used in the literature. We find these me...
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作者：Kim, Chansog (Francis); Wang, Ke; Zhang, Liandong
